In addition to property management, Nesbitt Realty is a full-service real estate brokerage serving Exchange_at_van_dorn
After a period of owning a rental unit, landlords can choose to sell their rental property. Nesbitt Realty is a full service brokerage and we have successfully and quickly sold many properties at best market value for our former landlord clients in Exchange_at_van_dorn.
If you decide you would like to sell your rental, Contact us and we'll start by preparing a comparative market analysis to help determine what your rental unit will probably bring if sold. We'll also prepare estimated proceeds so you know how much you'll really net at the settlement.
What is a 1031 Tax Exchange and how can it benefit me?
A 1031 Tax Exchange is usually of greatest benefit to landlords in Exchange_at_van_dorn who have held rental unit for a longer period of time (more than ten years). Thanks to IRC Section 1031, a properly structured 1031 exchange allows a rental investor to sell a property, to reinvest the proceeds in a new rental property and to defer all capital gain taxes. IRC Section 1031 (a)(1) states:
“No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment, if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment.”
To understand the powerful protection a 1031 exchange offers, consider the following examples:
- An investor has a $100,000 capital gain and incurs a tax liability of approximately $35,000 in combined taxes (depreciation recapture, federal and state capital gain taxes) when the property is sold. Only $65,000 remains to reinvest in another property.
Assuming a 25% down payment and a 75% loan-to-value ratio, the seller would only be able to purchase a $260,000 new property. - If the same investor chose to exchange, however, he or she would be able to reinvest the entire $100,000 of equity in the purchase of $400,000 in real estate, assuming the same down payment and loan-to-value ratios.
As the above example demonstrates, exchanges protect landlords from capital gain taxes as well as facilitating significant portfolio growth and increased return on investment. In order to access the full potential of these benefits, it is important to have a good working knowledge of the exchange process and the IRC. For instance, an accurate understanding of the key term “like-kind” can uncover opportunities that could have otherwise been dismissed.
What is a short-sale?
A short-sale occurs when the seller sells a property for less than what is owed on the property. In the past, because of market contractions, some of our real estate investor clients have found themselves in an untenable situation with regards to their rental unit. In those cases the best way out was often a short sale. Quite frankly, due to market expansion and inflation, this has not been much of a concern lately.
Still, if you need it, members of our staff have CPDE (certified distressed property expert) training. We can clarify the consequences of a short-sale help you decide if that option is best for you and your rental unit.
Do you need understand more about our community?
Nesbitt Realty's Guide to Real Estate is a handy tool for everyone who needs to investigate real estate facts about Exchange_at_van_dorn and nearby areas. The Guide to Real Estate provides facts regarding what has sold and what is on the market, and a few compelling facts that you may not know. Not to mention, our Guide highlights many of the fundamentals of residing in Exchange_at_van_dorn. Yes, most of this is interesting for buyers and sellers, but landlords and tenants will likely also find this information to be quite sobering.
Landlord Reference
a handy source for landlords in Exchange_at_van_dorn
- Before you move a tenant into your rental in Exchange_at_van_dorn
- Collections and evictions
- Communications with the renter
- During tenancy
- End of tenancy and what happens when a renter breaks the lease
- How does the landlord get paid?
- How your rental manager handles the association and your community
- How your property manager handles utilities
- How Nesbitt Realty & Management finds renters
- Insurance matters for rental investors using our property management
- How Nesbitt Realty & Management manage keys
- Exchange_at_van_dorn landlord responsibilities
- Maintenance, repairs & inspections for your property in Exchange_at_van_dorn
- The move-in inspection
- Property management information form
- Selling a 1031 tax exchange & more
- Starting our management of your property
- When owners don't yet know their new address
- Vetting renters in Exchange_at_van_dorn